NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rebound As Traders Buy The Dip

Key Insights

• SP500 moved higher as traders focused on GDP Growth Rate report, which missed expectations. 
• NASDAQ settled near 16,700 as traders used the pullback to increase their long positions in tech stocks. 
• Dow Jones settled above the 37,200 level. 

SP500

SP500 gains ground as traders react to GDP Growth Rate report, which missed analyst expectations. The report indicated that third-quarter GDP Growth Rate was 4.9%, compared to analyst consensus of 5.2%. The lower-than-expected economic growth boosts chances for a rate cut in March. Today, traders also had a chance to take a look at the Initial Jobless Claims report. The report showed that 205,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 215,000. Philadelphia Fed Manufacturing Index declined from -5.9 in November to -10.5 in December as manufacturing sector remained under pressure. The general market sentiment was bullish, and all market segments moved higher in today’s trading session.

From the technical point of view, SP500 needs to settle back above the resistance at 4730 – 4750 to have a chance to gain sustainable upside momentum.

NASDAQ

NASDAQ rebounded after the recent pullback as traders bought the dip. GDP data provided material support to NASDAQ index as Fed policy outlook remains the key driver for stocks. Demand for the shares of tech companies stays strong, which is bullish for the tech-heavy NASDAQ.

RSI has recently moved back into the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Dow Jones

Dow Jones moved higher, supported by the solid performance of Salesforce and Intel stocks. The majority of Dow Jones components moved higher in today’s trading session.

Dow Jones has recently made several attempts to settle above the resistance at 37,400 – 37,500, but these attempts yielded no results. In case Dow Jones settles below the 37,200 level, it will head towards the nearest support at 36,900 – 37,000.

For a look at all of today’s economic events, check out our economic calendar.